Home Buying in Howell>Question Details

Maureen Adams, Home Buyer in Hazlet, NJ

are there any negotiations with the house with a short sales for repairs on the home?

Asked by Maureen Adams, Hazlet, NJ Wed Aug 15, 2012

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If you need a home inspector give me a call my name is John dubbs my company's name is Attic to Basement Inspection Services. My number is732-901-1055.
0 votes Thank Flag Link Wed Aug 22, 2012

My recommendation would be to perform a home inspection prior to the offer. In this way, you can reduce your offer price before presenting the offer to the bank.

In addition, removing the home inspection contingency makes your offer more attractive to the bank.

Franceca Patrizio, Broker Sales Associate, ePro, SRES
0 votes Thank Flag Link Fri Aug 17, 2012
Without the specifics of the property, its location, and offerings it's impossible to predict the price for which a home could sell. With this said, negotiations are always an option. Whether or not they work to your benefit will depend on a number of factors.

With a short sale there are two levels of negotiations...first with the seller and secondly with their lender. Our recommendation is to negotiate your best deal with the seller and hope your agent can justify that amount the the lender. Banks rarely accept offers that are "way off" the local market value.

There's no harm in trying....at some point you will come to understand if the lender will consider your offer a serious one.

Good luck,

0 votes Thank Flag Link Thu Aug 16, 2012
You should take that into consideration before you submit your offer on the house you are interested in and after you have done a home inspection. Short sale homes are sold strictly as is and the buyer is responsible for all repairs not the owners or the lender that holds the mortgage. The sellers get nothing from the sale & the lender is getting less than what is owed on the house. What you can do is include a letter of explanation with your offer explaining why you feel your offer is justified based on the condition of the house,it's worth a try. You can also try making an offer higher than you were planning on and ask for a credit back for repairs at closing.
0 votes Thank Flag Link Thu Aug 16, 2012
I have not heard of any negoations regarding repairs on a short sale. Homes are usually sold as is.
0 votes Thank Flag Link Wed Aug 15, 2012
Hi Maureen,

In most cases with a short sale, the property is sold 'as is'. The seller's usually don't have the money for repairs and most lenders won't pay for them. HOWEVER, it doesn't hurt to ask for the repairs - especially if they are safety issues. The worst thing that could happen is the lender says 'no'. I've had short sales close where the lender has paid for repairs but only on safety items, not cosmetic repairs.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Wed Aug 15, 2012
No. My colleagues have answered your question pretty thoroughly. I want to reiterate the possibility of a 203K (construction) loan. With a little luck, the bank holding the paper might also be a vehicle for this type of improvement loan --- IF the improvements are pretty significant.

Keith Radhuber, Broker Associate
Holmdel, NJ
0 votes Thank Flag Link Wed Aug 15, 2012
Typically no. Lenders are taking a loss and rarely add to it by paying for repairs. Usually the property is sold "as is" "where is" and inspections, co's and some liens are the responsibility of the buyer.

If this is something you are very interested in, I would suggest looking at properties that have already been foreclosed and you will be dealing only with the lender. This allows more flexibility in negotiations. You will also have an easier time adding the potential for a 203k loan.

If you are determined to try negotiating repairs on short sales, bring a lot of cash, in order to discount the price.
0 votes Thank Flag Link Wed Aug 15, 2012
Most sellers are walking away with no equity. thats why it is a Short Sale.
occasionally you may find a motivated seller that may be willing to do something minor.
If they had the money to fix something major they would have used it to save their house.

For Short Sales before you make an offer you should take into consideration any repairs. cost of getting the Certificate of Occupancy and any permits that may need to satisfied for the local town.
0 votes Thank Flag Link Wed Aug 15, 2012
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